At COP29 in Azerbaijan, ASEAN nations took a landmark step in regional climate collaboration through a Memorandum of Collaboration (MoC) signed by the carbon market associations from Malaysia, Indonesia, Singapore, Thailand, and the ASEAN Alliance on Carbon Market (AACM). The agreement, witnessed by Malaysia’s Minister of Natural Resources and Environmental Sustainability, underscores ASEAN’s commitment to developing a unified carbon trading system under the ASEAN Common Carbon Framework (AACF).
This collaboration aims to streamline the production of high-quality carbon credits, enhance market liquidity, and align domestic methodologies across Member States to foster regional integration. By improving demand signals, setting governance standards, supporting capacity building for carbon projects, and with the Government of Malaysia serving as the 2025 ASEAN Chair, the MoC can help position ASEAN as a global leader in carbon market development and climate action.
Efforts such as Singapore’s advancements in carbon credit verification and Indonesia’s compliance-based Emission Trading System (ETS) highlight the region’s progress. Furthermore, an interoperablecarbon market as well as harmonized regulatory & standards for carbon credits will be critical ASEAN’s transition to a low-carbon economy, aligning with the ASEAN Strategy for Carbon Neutrality. Addressing challenges, including disparities in carbon market maturity and economic dependence on fossil fuels, through regional initiatives like the ASEAN Climate Change and Energy Project (ACCEPT) can drive meaningful progress
